For December 2021, the Bank of Jamaica (BOJ) projects that the value of Jamaican currency issued by the bank will increase by approximately $23.1 billion or around 11.3 per cent, relative to the stock at the end of November 2021 ($204.4 billion). 

The forecast for the month is below the five-year average growth rate of 16.4 per cent for the month of December.

The projected currency stock of J$227.5 billion at the end of December represents an annual nominal growth of 19.4 per cent, compared to 28.0 per cent at the corresponding period in 2020.

When the forecasted change in the general level of consumer prices is considered, the projected real growth in currency for the year is 11.2 per cent, which is lower than the real growth of 21.6 per cent for the previous year. This deceleration reflects a moderation in orders relative to 2020 when there was considerable uncertainty about the effect of the coronavirus (COVID-19) pandemic.

The BOJ recorded a net currency issue of $3.6 billion (1.8 per cent) for the December 1-10 period. This was lower than the net currency issue of $7.0 billion recorded over the same period in 2020. Consequently, as at December 10, 2021, the stock of currency in the hands of the public and in the vaults of financial institutions was $208.0 billion.

Typically, the BOJ issues and redeems notes and coins daily in order to meet the demand for cash from individuals and businesses.

There is normally a stronger demand for currency during the month of December, associated with increased spending over the holiday period. Financial institutions, therefore, request more currency from BOJ to satisfy this demand.